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Flypaper effect for different levels of health expenditures on Brazilian municipalities: assessment of the asymmetry of the impacts of conditional and unconditional transfers

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Author(s):
Fernando João Alexandre Parmagnani
Total Authors: 1
Document type: Master's Dissertation
Press: São Paulo.
Institution: Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD)
Defense date:
Examining board members:
Fabiana Fontes Rocha; Enlinson Henrique Carvalho de Mattos; Fernando Antonio Slaibe Postali
Advisor: Fabiana Fontes Rocha
Abstract

In the fiscal federalism literature, beyond the discussion on the flypaper effect arises evidence for conditional grants that spending in the chosen area may increase by less than the amount of the transfer meant to that area, with the remaining funds being used for other goods and public services - the fungibility effect. This work aims to assess the impact of transfers from Unified Health System besides the flypaper effect, testing also the fungibility effect for different kinds of municipal health expenditures (total expenditures, expenditures with employees, expenditures with drugs, expenditures with outsourced services and investment expenditures). Classical models of panel data and quantile regressions with fixed effects were used. There is evidence that, for total expenditures, fungibility effect occurs for Fixed Basic Atention National Policy grants, since for every R$ 1 of health transfers to approximately R$ 0,20 is applied in other areas. Moreover, this effect appears to be lower in cities that have higher health care expenditures. Furthermore, the flypaper effect seems to be more associated with expenditures with expenditures. (AU)

FAPESP's process: 11/15221-7 - Study of the flypaper effect of specific-purpose nonmatching grants: Impact of the Fiscal Responsibility Law on health spending of brazilian states.
Grantee:Fernando Joao Alexandre Parmagnani
Support Opportunities: Scholarships in Brazil - Master